Vanguard Emerging Markets Government Bond ETF

With long-term yields elevated and potential Fed rate cuts in 2026, three Vanguard bond ETFs show promise: High-Yield Active ETF, Intermediate-Term Corporate Bond ETF, and Emerging Markets Government Bond ETF, each offering unique investment opportunities in the current economic landscape.

Vanguard has announced significant fee cuts across its European fixed income UCITS ETF range, making its products more cost-effective for investors. The fee reductions will apply to a wide variety of fixed income strategies, including global bonds, U.S. Treasuries, UK gilts, and emerging market sovereign debt.

Investing $30,000 in Vanguard's Emerging Markets Government Bond ETF, Long-Term Corporate Bond ETF, and Intermediate-Term Corporate Bond ETF could generate over $1,700 in passive income annually. However, the Emerging Markets ETF carries higher risk due to volatility in emerging markets.

OMERS, the defined benefit pension plan for Ontario's municipal sector, achieved an 8.3% investment return in 2024, exceeding its 7.5% benchmark. The plan's net assets grew to $138.2 billion, and it reported a 98% smoothed funded status. OMERS has averaged a 7.1% annual return over the past 10 years.

The article discusses strategies for building a portfolio that can withstand geopolitical tensions and conflicts. It highlights sectors and assets that have historically performed well during wars, such as gold, defense stocks, and government bonds.